Japan’s regulators and related companies are overhauling the financial system to invigorate stablecoins and the Web3 economy. At the heart of this effort is SBI Group’s plan to place a yen stablecoin at the core of its Web3 strategy, built on its Streamium blockchain and seeking government approval. The project aims to extend carry trades, which rely on Japan’s low interest rates, into the on-chain decentralized finance markets.
SBI and Startale Group plan to launch a yen-based stablecoin called JPYSC to implement carry trades on-chain. Japan already has a yen stablecoin called JPYC, but its market capitalization, about $20 million, limits its use for carry trades. Banks are reportedly considering issuing a yen-based stablecoin, but retail participation remains low, partly due to crypto asset taxes of up to 55 percent; policymakers are weighing a reduction to 20 percent and the introduction of exchange-traded funds.
Japan is accelerating a blockchain-centered overhaul to boost stablecoins and the Web3 economy, with regulators and industry players playing pivotal roles. At the core is SBI Group’s plan to anchor a yen-stablecoin on its Streamium platform, seeking government approval to support on-chain carry trades in DeFi. SBI and Startale Group are developing a yen-based stablecoin named JPYSC to enable carry trades on-chain.
While a yen stablecoin already exists as JPYC, its market capitalization—around $20 million—limits its use for carry trades. Banks are reportedly exploring yen-based stablecoins, but retail participation remains muted, partly due to crypto asset taxes as high as 55 percent; policymakers are weighing a reduction to 20 percent and the introduction of ETFs. If approved, the initiative could extend carry trades into on-chain markets and bolster on-chain settlement within Japan’s Web3 ecosystem, shaping both regulatory policy and the pace of yen-denominated DeFi adoption.
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